LA Phase 3 Major Updates

Posted by Margolin & Lawrence on May 2, 2019

NEW PHASE 3 LEGISLATION APPROVED BY CITY COUNCIL

On April 30th, the Los Angeles City Council approved new legislation to begin the third and final Phase of cannabis licensing within the City of Los Angeles no later than the end of next month.

Phase 3 will include two rounds of applications for Storefront Retailer Licenses in addition to one round of applications for Non-Storefront (i.e., Delivery) Retailer Licenses.

Priority will be given to Tier 1 and Tier 2 Social Equity Applicants for all three rounds. Additionally, each round will operate on a first-in-time rule. In other words, the first application submitted will be given priority over succeeding applications with premises within 700 feet of the property. Licenses will be issued on a first-come-first-serve basis.

 

 

 

PHASE 3: ROUND 1, ROUND 2, & DELIVERY PILOT PROGRAM

The upcoming Phase of cannabis licensing will give priority to applicants under the Social Equity Program, a program designed to provide reparations to individuals who have been disproportionally impacted by the war on drugs. Social Equity Applicants will receive expedited application review among other benefits through the program. Eligible applicants in the program will be classified as either Tier 1 or Tier 2 applicants, depending on the criteria they meet. To qualify for Tier 1 or Tier 2 Applicant status, individuals must have lived in a Disproportionately Impacted Area (DIA) for a minimum amount of time and cannot own an Existing Medical Marijuana Business (EMMB). The City of Los Angeles has listed a set of zip codes that currently qualify as DIAs. The City announced that it may add additional zip codes to this list in the future.

ROUND 1 (STOREFRONT RETAIL LICENSING)

After all Tier 1 and Tier 2 Applicants have been verified and notified by the DCR, the DCR will begin accepting applications for Round 1 of Phase 3. Only verified Tier 1 or Tier 2 Social Equity Applicants will be eligible to submit an application during Round 1. Applicants must submit all required documents (see table) within a 14-day period to be announced by the DCR. The dates of the 14-day period have not yet been identified, but the City Council has ordered the DCR to begin this period no later than September 3, 2019. The DCR will distribute 100 licenses during Round 1 to the first 75 eligible Tier 1 Applicants and the first 25 eligible Tier 2 Applicants. Verified Tier 1 or Tier 2 Applicants can only apply for one license during Round 1.

ROUND 2 (STOREFRONT RETAIL LICENSING)

Following the 14-day period of Round 1, the DCR will host a second round of Storefront Retail License application processing. Round 2 will only accept applications from verified Tier 1 and Tier 2 Applicants, just as in Round 1. For the second round of application processing, the DCR will accept applications during a 30-day period that has yet to be determined. Specific documents will be due within the 30-day application period, while all additional documents will be due within 90 days (see table). The first 150 eligible applicants will be issued licenses. The DCR may issue additional licenses until each Community Plan Area (CPA) has reached Undue Concentration. Tier 1 or Tier 2 Applicants who were issued a license during Round 1 may not apply for a license in Round 2. 

DELIVERY PILOT PROGRAM (NON-STOREFRONT RETAIL LICENSING)

The DCR has announced that it will launch a Delivery Pilot Program, where it will issue Non-Storefront Retail (i.e., Delivery) Licenses to the first 60 eligible applicants. The Delivery Pilot Program will accept applications from verified Tier 1 and Tier 2 Applicants as well as General Applicants. The DCR announced that delivery will be restricted to addresses within City limits unless special permission is granted by the DCR. 

 

 

 

  

PRE-VETTING PROCESS FOR SOCIAL EQUITY APPLICANTS

Applicants that qualify as Tier 1 or Tier 2 Social Equity Applicants must submit a preliminary application along with supporting documents to the Department of Cannabis Regulation (DCR) in order to have their Tier 1 or 2 status verified. The Ordinance voted into law yesterday identifies an unspecified 60-day period in which these preliminary applications will be received. Although the exact dates of the application window have yet to be determined, the City Council approved a motion ordering that the 60-day period begin no later than May 28, 2019. The DCR will not accept applications or supporting documents after the 60-day period. After the 60-day period ends, the DCR will determine whether or not applicants are verified as Tier 1 or Tier 2 applicants and notify all applicants of their final, non-appealable decision prior to the beginning of the Phase 3 Round 1 application window.

 

 

Everything You Need to Know from the Pasadena Application Workshop

Posted by Raza Lawrence on November 14, 2018
On Tuesday   night, the city of Pasadena hosted a presentation on cannabis licensing with a planning consultant. Here is what we learned from the meeting.  
 
Regulations for cannabis businesses were voted in on   June 5th  by Pasadena voters. As a pragmatic and conservative city, Pasadena's licensing focuses on exercise of local control – with the aim of protecting its residents from secondary effects through land use regulation. 
 
The application period is from   January 1st to January 31st at   11:59 p.m.  There will be a notice of the 30-day period on   December 14th. Currently there is a draft of the review criteria available. The final criteria will be released on   December 14th.  
 
The whole application, as well as payments, may be submitted electronically. Pasadena's selection committee will not give special weight to applications submitted on   January 1st  versus   January 31st, and will not look at anything until the application window closes. The application fee will be approximately $10,000 per category. 
 
The application requires qualifications of the operator, cover letter, business plan, background, experience dealing with government agencies, neighborhood compatibility and enhancement, and security plan. The limit is 50 pages of text and images. You do not have to have a confirmed site in order to apply. 
 
When the application portal closes, there will be an initial screening of applications - did the applicant answer all questions? is the application in full compliance? - to ensure the application is complete and responsive. 
 
Once applications are scored, top applicants will be notified and will have the  opportunity to go forward and secure land use permits and public  health permits – this is period when you need to lock down your sites,  look at buffer zones, and so on.  These sites must also be located at least 1,000 feet from  any other cannabis retailer.
 
All the scoring will be based on written submissions, but the city reserves the right to start an interview process of the final applicants. 
 
Pasadena will allow up to 6 retail permits in the city, one per council district, so long as they meet the required separation from schools, parks, and residential properties. 
 
Another point about delivery: people with licenses in other cities are allowed to deliver in Pasadena. Pasadena will not have separate delivery licenses, but the retail licenses will allow both storefront and delivery. 
 
Pasadena will allow up to 4 cultivation sites in the city, indoor only. These cultivation sites must be in commercial general and industrial general zones. 
Pasadena will also allow 4 testing laboratories in the city where other medical labs are allowed. 
 
For more information from the workshop, see the handouts at the City of Pasadena website. These include details of the proposed scoring system. 
 

The History of Cannabis by Margolin & Lawrence

Posted by Margolin & Lawrence on April 20, 2018

Ask a Cannabis Lawyer: Which license do I need for cannabis events? 

Posted by Margolin & Lawrence on January 30, 2018

With the rise in popularity of cannabis related events in California such as Kush Stock, Chalice, High Times' Cannabis Cup, Hempcon, and the Secret Sesh; many event organizers and vendors are uncertain as to the new laws relating to cannabis events now that marijuana is legal in California. Our Los Angeles Cannabis attorneys are often asked about events and licensing. The Bureau of Cannabis Control recently issued guidance on just this topic. 

In short, everyone must be licensed. All cannabis event organizers will be required to obtain a cannabis event organizer license from the Bureau of Cannabis Control. The one exception to this is if you are hosting a private event. If your event is open to the public and you are selling tickets to the public, you need an event license. 

The Bureau recently clarified what will be expected of event organizers moving forward in order to comply with all regulations. If you want to sell cannabis products at your event, you will either need vendors who have a retail license there to do the sales, or you will need a retailer license yourself.

The State license fees will be determined by the number of events the organizer plans to produce during that year. However, this event license does not authorize the event organizer to cultivate, distribute, manufacture, or sell cannabis or cannabis products. In order to participate in the sale, cultivation, distribution or manufacturing or cannabis, the organizer must obtain separate licenses to engage in those commercial cannabis activities. This also means that compensation to a cannabis event organizer may not be tied to the sale of cannabis goods.

Once an event organizer obtains their event organizer license from the Bureau, the organizer must then ensure that all cannabis goods transported to the event site are transported by a licensed distributor and that the only vendors permitted to sell at the event to retail customers are a licensed retailer or microbusiness. To further ensure compliance by all participants, event organizers will be required to provide to the Bureau with a list of all licensees selling cannabis on-site at the event.

All cannabis goods sales at the event and access to the area where cannabis consumption is allowed must be limited to individuals 21 years of age and older, and cannabis products and cannabis consumption can’t be visible from any public place or non-age- restricted area. Food trucks are still allowed, but the consumption of alcohol and tobacco is not at cannabis events.

Currently, the State of California is issuing temporary cannabis event licenses for cannabis events that last no longer than four consecutive days. To obtain a temporary cannabis event license, the cannabis event organizer licensee must submit an application to the Bureau at least 60 days before the first day of the cannabis event and must obtain a license for each individual cannabis event from the Bureau for the specific dates and location of the event. Finally, the event organizer must obtain written approval from the local jurisdiction authorizing on-site cannabis sales and consumption by individuals 21 and older. This leaves it up to each individual municipality to determine whether they will allow cannabis events to take place. For example, the Orange County Fair Board members recently voted to prohibit marijuana-related events at the Costa Mesa Fairgrounds. The first cannabis event State license was issued to the Burn Out Music, Art and Cannabis festival scheduled to take place in Tulare County, but was subsequently cancelled by City Officials just two days before the event.

To start the process of applying for your event, you can do so directly on the Bureau of Cannabis Control’s website. For legal advice to ensure the success of your cannabis event, Contact us!

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This blog is not intended as legal advice and should not be taken as such. The possession, use, and/or sale of marijuana is illegal under federal law.